According to ChainCatcher, the German Ministry of Finance, led by Klingbeil, has proposed that Bitcoin purchased after December 31, 2026, be subject to a flat 25% capital gains tax, increasing to 26.375% when combined with the solidarity surcharge. Starting in 2028, cryptocurrency exchanges will be required to withhold and remit taxes on behalf of users. If the purchase cost cannot be provided when transferring Bitcoin to another platform, the 25% tax rate may apply to the entire sale amount, not just the profit. Bitcoin acquired before this cutoff date will continue to benefit from the existing one-year holding period exemption; currently, individuals in Germany do not pay tax on Bitcoin sales if held for more than 12 months.
Germany proposes a 25% flat tax on Bitcoin purchases after 2026, with platform tax withholding starting in 2028.
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Summary
Germany’s Ministry of Finance, under Klingbeil, has proposed a 25% flat tax on Bitcoin purchases made after 2026, with a solidarity surcharge raising the rate to 26.375%. Starting in 2028, platforms must withhold and remit taxes. If cost basis data is unavailable, the 25% tax may apply to the full sale amount. Bitcoin held for more than one year before the deadline remains tax-free. The plan aims to simplify reporting and align with evolving Bitcoin analysis trends.
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